Signs of a cash healthy company do NOT include:
A)net cash provided by operating activities exceeds net income
B)operating activities are the major source of cash
C)investing activities include more purchases than sales of long-term assets
D)borrowing $100 million and repaying $1 million

Question

Quizplus · Accepted Answer

Borrowing significantly more than repaying indicates reliance on external financing rather than internal cash generation, which is not a sign of a cash healthy company.

Signs of a Cash Healthy Company Do NOT Include